Alberta Sales Tax (GST) Calculator 2025

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Sales Taxes in Alberta

Alberta is the only province in Canada without a provincial component in the sales tax. Goods and services are charged only the 5% federal Goods and Services Tax (GST). This, combined with generally low personal and corporate income tax rates, has contributed to what is often called the "Alberta Advantage" — a longstanding reputation for a favourable tax environment. However, as noted by the Fraser Institute in their report Alberta’s Lost Tax Advantage, tax policy changes in 2015 have led to the diminishing of this advantage, particularly due to an increase in personal and corporate income taxes.

There are two types of exemptions for GST: direct exemptions and zero-rated goods and services. The difference is related to how businesses handle costs related to the exemptions, but as a consumer, you would not have to pay GST on items from either category.

Goods and services that are zero-rated from GST include:

• Basic groceries, including meats, fish, cereals, dairy products, eggs, vegetables, coffee, tea. Some foods including snack foods, liquor, and carbonated beverages are charged HST.
• Prescription drugs, but not any drugs available over-the-counter (OTC).
• Medical devices
• Feminine hygiene products

Goods and services that are directly exempt from GST include:

• Residential resales of property that has been previously owned and used
• Rental accommodations of longer than a month
• Educational services that lead to a certificate or diploma or are required for a certain practice
• Medical and dental services
• Financial services such as bank fees
• Legal aid services
• Day-care services

Use our simple Alberta income tax calculator

While Alberta does not have a provincial sales tax, the federal 5% Goods and Services Tax (GST) still applies. According to the federal budget of 2024, the GST is projected to generate $55.3 billion in revenue in 2025-26. This is 10.8% of total revenue projected at the federal level for the year, and almost double the amount Canada spends on national defence every year.

Alberta is known for its extensive natural resource industry, primarily centred around fossil fuels. Alberta’s government owns 81% of oil and gas resources and collects royalties from their extraction. In the 2023-24 fiscal year, the government of Alberta collected $19.3 billion, or 25.8% of all government revenue, as Non-Renewable Resource Revenue. As a result, Alberta does not need to charge a provincial sales tax as a source of revenue.

Many other governments of resource-rich regions have similar initiatives. Alaska has the Alaska Permanent Fund, which issues annual dividends to Alaska residents. Norway has the world’s largest sovereign wealth fund, with assets valued at approximately $1.7 trillion USD as of early 2025. Because of their natural resources, Alberta and these other regions are able to provide certain economic incentives to their citizens.